It’s been just revealed that the crypto analyst Nicholas Merten said that Ethereum is preparing to go straight to the moon in a new bull market phase.
He is checking out ETH’s market dominance which shows the fact that ETH’s market share relative to all other coins.
ETH’s market dominance to explode
He said that ETH’s market dominance is poised to break out.
“Even with a variety of other cryptocurrencies now that Etheruem has to compete with or outpace to maintain market share, it’s been generally holding up at a resistance range we saw back here between March and May of 2017, around the 19% to 20% range for market dominance,” he said.
He continued and said: “And this showcases that this is a really critical metric we need to watch for…And that is a huge psychological level because once we broke through that range, we climbed all the way up here to 32% market dominance, an over 50% increase of previous ownership of market share.”
A rise in Ethreum’s market dominance is showing the fact that the digital asset gains value faster than other crypto assets.
He said that Ethereum’s EIP-1559, the much-awaited upgrade that would burn a portion of the transaction fees, could help the bullish case for ETH by placing deflationary pressure on it.
“[EIP-1559] at the end of the day is going to mean we’re going to have less and less supply, and in fact with Ethereum’s monetary policy, the way that it’s currently working, if there is enough activity in the network, then it could actually turn ETH not only into an asset that has some form of a fixed supply, but also a truly deflationary supply, where the available ETH in the market starts to truly actually decrease rather than increase, even with staking rewards. And that’s a really interesting dynamic here that we have to keep in mind.”